President-elect Lenín Moreno’s narrow victory and modest legislative majority fall short of what he needs to push his costly leftist agenda while simultaneously bridging deep socio-political divisions and struggling with vexing economic challenges. Moreno, of the ruling Alianza PAIS, narrowly defeated Guillermo Lasso of the CREO movement, 51.16 to 48.84 percent, in Ecuador’s presidential runoff election on April 2. As a referendum on outgoing president Rafael Correa and his “Citizen’s Revolution,” the election marks a victory for Latin America’s ideological left after setbacks in Argentina, Brazil, and Peru. The splintered opposition vote largely coalesced behind Lasso’s candidacy – he earned only 28.09 percent in the first round – but an uneven electoral playing field (including support from state-run media and Correa’s deployment of thugs to intimidate Lasso supporters) and his affiliation with the banking crisis of 1999 appear to have hurt him.

The incoming government appears committed to continuing Correa’s economic and social policies. Moreno is reassembling many of the further left members of Correa’s team for his own government, including powerful ex-ministers Fander Falconí and María Belén Moncayo. Although he is more rhetorically moderate than his predecessor, Moreno is an avowed socialist. As a young man, he was a member of the fringe Marxist-Leninist Revolutionary Left Movement, and as president-elect he has already promised an additional US$2 billion on top of the government’s already unsustainable social spending. At the same time, Moreno has adopted a more conciliatory tone with the United States than Correa and has already made overtures to social movement leaders that had fallen afoul of the outgoing president.

Although Moreno will enjoy a legislative majority, he is taking office under difficult political and economic circumstances that will test his leadership. The outgoing government’s politicization of public agencies like the National Electoral Council (CNE) has hurt the president-elect’s legitimacy. The slim difference in the vote spawned protests outside the CNE in Quito by mostly middle-class members of the opposition. What is more, despite assurances from the Organization of American States (OAS) and the local NGO Participación Ciudadana that the final vote closely aligned to their internal quick counts, a number of opposition voices maintain that there was electoral fraud. There are more challenges:

In the National Assembly, Moreno and his party won 54 percent of the seats (74 of 137) with just 39 percent of popular support due to clever districting and a seat allocation formula that favors large parties. Although this provides for unified government in a constitutional environment that can harshly penalize legislative gridlock, it is also disproportional to the popular support for the party.

Moreover, Moreno’s majority may also be more illusory than it appears. As many as 24 of Alianza PAIS’s 74 legislators, 32 percent of the movement’s total seats, were elected via electoral alliance between PAIS and a different party: seven from the Ecuadorian Socialist Party and the remainder from a panoply of inchoate provincial-level movements. These legislators’ support for PAIS is not guaranteed.

Maintaining his heterogeneous alliance in a country with notoriously high levels of party switching will require a great deal of negotiating skill and flexibility of the inexperienced Moreno. He possesses limited policymaking options to confront an unviable fiscal situation – the deficit doubled in 2016 – and economic slowdown – according to the IMF, the economy contracted by 2.2 percent in 2016 and is expected to decrease by an additional 1.6 percent in 2017 – and an overvalued currency in real terms. The Moreno administration confronts the unenviable task of continuing and even expanding an economically costly political project in the midst of fiscal constraints, a fragile political majority, and a limited popular mandate among deep social divisions. Less daunting situations have felled more experienced leaders in Ecuador’s history.

May 8, 2017

*John Polga-Hecimovich is an Assistant Professor of Political Science at the US Naval Academy. The views expressed in this article are solely those of the author and do not represent the views of or endorsement by the Naval Academy, the Department of the Navy, the Department of Defense, or the US government.